Starter Stock Portfolio: 5 Safe Stocks To Invest In Now

In this article, we will be taking a look at 5 safe stocks to invest in now. To read our detailed analysis of current stock market news, you can go directly to see the Starter Stock Portfolio: 12 Safe Stocks To Invest In Now.

5. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 111

Thermo Fisher Scientific Inc. (NYSE:TMO) is a life sciences tools and services company based in Waltham, Massachusetts. It offers life sciences solutions, analytical instruments, specialty diagnostics, and more.

RBC Capital analysts maintained a $642 price target and an Outperform rating on Thermo Fisher Scientific Inc. (NYSE:TMO) on February 1.

There were 111 hedge funds long Thermo Fisher Scientific Inc. (NYSE:TMO) in the fourth quarter, with a total stake value of $10.3 billion.

Generation Investment Management mentioned Thermo Fisher Scientific Inc. (NYSE:TMO) in its fourth-quarter 2023 investor letter:

“In each quarterly letter we share examples from the portfolio that bring our investment process to life. This quarter we focus on Thermo Fisher Scientific Inc. (NYSE:TMO), a provider of healthcare products.

In recent years advances have accelerated. The large-scale use of mRNA vaccines during the COVID pandemic – the first major application of these vaccines – is just one example. Similar advances in drug development have allowed medicines to be developed for hard-to-treat diseases like Alzheimer’s, as well as to treat and perhaps cure diseases that previously eluded treatment.

To push innovation forward, researchers need tools to ask the right questions, run experiments to test hypotheses and in turn draw insights. These tools encompass high-specification instruments, high-purity reagents, powerful software and a variety of specialised services. An ecosystem has developed of companies that specialise in providing these tools. We often think of them as providing the ‘picks-and-shovels’ to researchers who are mining for the gold once obscured by nature…” (Click here to read the full text)

4. UnitedHealth Group Inc. (NYSE:UNH)

Number of Hedge Fund Holders: 113

We saw 113 hedge funds long UnitedHealth Group Inc. (NYSE:UNH) in the fourth quarter, with a total stake value of $11.2 billion.

UnitedHealth Group Inc. (NYSE:UNH) is a managed healthcare company. It offers consumer-oriented health benefit plans, healthcare coverage, and health and well-being services.

As of March 7, Bank of America Securities analysts maintain a Buy rating and $675 price target on UnitedHealth Group Inc. (NYSE:UNH).

Ruane, Cunniff & Goldfarb said this about UnitedHealth Group Inc. (NYSE:UNH) in its fourth-quarter 2023 investor letter:

“The return in UnitedHealth Group Incorporated (NYSE:UNH) shares was essentially flat last year, whereas the Index was up sharply. In 2022, the return in UnitedHealth shares was modestly positive, whereas the Index was down sharply. The company’s financial performance, however, has been quite steady all along. In 2022, United’s revenues and earnings per share were up approximately 13% and 17%, respectively. We expect them both to be up low-teens in 2023. These pleasing financial results are consistent with United’s historical track record and with what we believe we will see for years to come.

Last year, sentiment across the managed care space was negatively impacted by concerns over reimbursement levels for Medicare Advantage, a perceived increase in the risk of adverse regulation for pharmacy benefit managers, and a slight deterioration of medical loss trends. While we do not dismiss these factors as irrelevant, we consider them in the context of the scale and diversity of United’s business as well as the resulting essential role the company plays in the admittedly imperfect US healthcare system…” (Click here to read the full text)

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 242

Meta Platforms, Inc. (NASDAQ:META) is a big tech company operating various social media platforms, such as Facebook, and offering augmented and virtual reality-related products. It is based in Menlo Park, California.

In the fourth quarter, 242 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), with a total stake value of $44.2 billion.

A Buy rating and $500 price target were reiterated on Meta Platforms, Inc. (NASDAQ:META) on March 18 by Roth MKM analysts.

Ruane, Cunniff & Goldfarb mentioned Meta Platforms, Inc. (NASDAQ:META) in its fourth-quarter 2023 investor letter:

“Two additional trims, in Meta Platforms, Inc. (NASDAQ:META) and Carmax, were more substantive in nature. When Meta’s stock declined in 2022, we judged it to be significantly mispriced and held our ground through the bottom. We trimmed the position serially last year as the stock soared because we were wary of holding a large position exposed to significant regulatory risks, particularly in Europe. We are comfortable owning Meta at today’s much-reduced weighting and current valuation. The smaller position size reflects our updated assessment of the balance of long-term risk versus reward.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 293

Telsey Advisory Group analysts maintained an Outperform rating and a $200 price target on Amazon.com, Inc. (NASDAQ:AMZN) on March 27.

Amazon.com, Inc. (NASDAQ:AMZN) is another big tech company on our list. It operates in the e-commerce and cloud computing sectors.

At the end of the fourth quarter, 293 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN), with a total stake value of $50.9 billion.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 302

Microsoft Corporation (NASDAQ:MSFT) is a systems software big tech company. It offers cloud-based applications and office consumer services, among more.

Wedbush analysts maintained an Outperform rating and a $500 price target on Microsoft Corporation (NASDAQ:MSFT) on March 26.

In total, 302 hedge funds held stakes in Microsoft Corporation (NASDAQ:MSFT) in the fourth quarter, with a total stake value of $87.3 billion.

Should you invest $1,000 in United Health right now?

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See also 14 Safe Stocks To Buy for Beginners and 11 Safe Stocks To Invest In.